Mixed Results For Proposed iHeartMedia Note Amendments: One Consent Solicitation Succeeds, Others Don't

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iHEARTMEDIA parent iHEARTCOMMUNICATIONS, INC.'s six consent solicitations for its senior notes due 2021 and five series of priority guarantee notes launched on NOVEMBER 28th and amended on DECEMBER 2nd have expired with mixed results: 81.5% of the holders of the 2021 notes consented to that offer, but the consent solicitations for the five series of priority guaranteed noted failed to reach a majority by the deadline.

For the 2021 notes, consents were received representing an aggregate principal amount of $1,286,154,353, thus allowing the proposed amendment to allow iHEART to exclude non-"accredited investors" or non-"U.S. persons" from any future consent or amendment  offer, a move iHEART characterized at the time as allowing it to make exchange offers without having to register the offers.  The vote means iHEART will pay a fixed fee of $1,729,168 cash to consenting holders at a rate of approximately $1.20 for each $1,000 principal amount; the company will also pay an aggregate cash payment of $2,593,752  as the contingent fee to consenting holders at a rate of approximately $1.80 for each $1,000 principal amount.

But as for the five series of priority guarantee notes, the deadline passed FRIDAY without a majority consenting, meaning that the five series will not be subject to the exclusion amendment and no fees will be paid to those noteholders.

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